ERP implementation best practice is centered on the intelligent planning and strategies adopted by an organization before the implementation of a new system. It is needless to elaborate the benefits and essentiality of ERP in an organization, but ERP implementation best practices should be followed strictly in order to succeed in its implementation. Many a times, it has been observed that many organizations face a debacle in implementation or the ERP fails to deliver the expected outcome. This results primarily due to wrong software selection or expecting high returns from the ERP. Organizations implementing ERP have to wait for sometime for the expected ROI as it takes more than one year for every organization to utilize ERP to the best possible limits. Sometimes the time taken and cost of implementation may run beyond estimation producing unexpectedly low returns.
Some of the best practices of ERP implementation can be summarized as:
1. ERP implementation requires intelligent planning and organizations opting for it should devote 4-5 months time in proper planning and budgeting. They should test all the features of the new system like customizations, business processes including the security measures.
2. The organizations should study carefully about their requirements and set clearly defined targets. They should spend time in analyzing the software and its functions and maintain clear communication with the vendors in every step of implementation and operation.
3. A team of experts having sound technical background should be hired to monitor each and every step of ERP implementation. The team should ensure proper functioning and credibility of every process.
4. Proper distribution of resources among the team members and employees is another important step in implementation led by an efficient project manager.
5. The organization should select the critical business process and specify the requirements to the ERP vendor. Priorities must be specified, and the product should ensure accuracy of the specified business processes. The organization must be ready to adopt technological advancements and new strategies.
6. In order to achieve the expected ROI, the organization should be aware of the costs and the main functional areas. The organization should carefully estimate the hidden cost and maintenance cost of ERP implementation.
7. Proper training of the in-house staff is absolutely necessary for ERP implementation. The organization should select the best staff and hire expert consultants from outside to acquaint them with the new system.
8. The organization should be efficient in sorting data during data migration. This is an important step in ERP implementation, and efficient data management is required to sort out the necessary and unnecessary data.
9. A risk management team should be formed to detect the loopholes in ERP implementation in order to avoid major disaster in the future. In case of any trouble, this team must act promptly to solve the crisis.